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The Maximum Long Term Capital Gain Tax Rate Is 15%?

pampammer profile photo
  • Tuesday, September 28, 2004 @ 06:05 PM EDT
  • 3 Comments

Hi,

I read the following in one of the posts:

A) "... The maximum long term capital gain tax rate is 15% if your tax bracket is at least 25%. "

and in an article in Money Magazine it says:

B) "... The 25% Rate - Who's Eligible: Property owners and real estate investment trust (REIT) investors in the 25% income-tax bracket or higher who hold property for more than one year. "

So which is correct? A or B?

thanks, Pam

Comments(3)

  • no photo
    NewKidinTown227th September, 2004

    Which Money magazine issue are you referring to and what is the story title?

    Perhaps there was a typo, it does happen. As of right now, the maximum long term capital gains tax rate is 15%. It will revert to 20% in 2009, barring Congressional intervention in the meantime.

  • no photo
    pampammer28th September, 2004

    here is the link:

    http://www.smartmoney.com/tax/capital/index.cfm?story=capitalgains&nav=LeftN

    thanks, Pam

  • no photo
    NewKidinTown228th September, 2004

    Thanks for the link. I read the entire Money magazine article, to include the full context for the sentences you extracted.

    The 25% tax rate discussion in the magazine article is referring specifically (and only) to depreciation recapture. No matter what your tax bracket, depreciation is recaptured at 25%.

    [ Edited by NewKidinTown2 on Date 09/28/2004 ]

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